12 Realistic Ways To Make Your First $1 Million

Many of us dream of being millionaires, but we’re deterred because we feel the path is too hard. The reality is, there’s no quick way to reach this elite status short of winning the lottery overnight — and that’s just not feasible.

But, don’t be deterred. There are realistic ways you can build up your wealth over time and earn that first million. And once you do, earning your second, third, and so on, is even easier.

We’ve researched what the pros say to do to get started on your path to millionaire status and come up with 12 great tips.

1. Harness Your Passion

Do you know why many businesses succeed? For some, it’s because the founders saw a need and a way to fulfill it. For others, though? It’s pure passion projects that propel them toward success.

It’s very true that when you love what you do, it doesn’t feel like work, even though it is. Figure out what makes you passionate and then try to channel that into a business idea.

2. Invest Smartly and Early

Investing is a great way to build up your wealth, but it takes time and investing smartly, rather than being overly ambitious. You should also start investing early, so the money has time to grow. The most common way to do so is to open a retirement fund.

You should also take some risks, but not drastic ones. For example, cryptocurrency can be quite volatile and you’re not likely to see the returns it once bestowed on those who mined it.

3. Be Frugal

There’s a common misconception that being frugal means not spending at all. What it really is, is being smart about how you spend your money. For example, do you really need to upgrade your phone every two years? No. Especially since your current phone likely works more than adequately.

Spending your money as quickly as you make it will never get you ahead in the savings game. In order to grow wealth, you need to save, so adopt conservative spending habits.

4. Max out Retirement Funds

In 2024, you can contribute $23,000 to your 401(k) or $6,500 to an IRA. If you’re over 50, you can make additional contributions to catch up, in the amount of $7,000 and $1,000, respectively.

Maxing out your retirement funds is a great way to ensure that you’ll be able to not only weather your golden years, but enjoy them as well.

5. Create Side Hustles

Side hustles and multiple income streams will set you ahead of your counterparts really quickly. Is it hard work? Yes, absolutely. Is it worth it, though? Also, yes.

With this additional income, you can stock more away and reach your goal of $1 million even quicker than if you had one income. So what do you do? Anything that tickles your fancy. The key, as we already mentioned, is to find something you love and enjoy, and channel your energy into that.

6. Stay Positive

When it comes to money matters, positivity is the name of the game. I’m a firm believer that staying positive, even when there are financial downturns, will give you a better mindset and make you more likely to achieve your goals.

If you’re too negative, you might pull money out before it matures or has a chance to grow. Investing is a long game, stick with it, even during market downturns.

7. Got an Inheritance? Don’t Spend It

Millions of people inherit money every year. It can be tempting to take that windfall and spend it. But, I know I’m taking the fun out of everything when I say this, don’t. Instead, invest it.

That smaller sum can actually grow exponentially if you’re willing to invest it and be moderately strategic with the funds. Answer this: would you rather have $25,000 now, or $250,000 in a few years?

8. Manage Your Debt

Nothing will suck your money out of your bank account faster than debt. Credit cards are the worst offenders. High interest rates coupled with only making the minimum payments means you’ll forever be stuck in that cycle.

Instead, if you need to have a credit card, use one that is beneficial to you in terms of perks and rewards. And, make sure you pay it off, or at the very least, pay more than the minimum payment each month.

9. Invest in Real Estate

Real estate is one of those assets that tends to appreciate over time, unless you truly neglect the home or property. There’s also plenty of real estate to invest in, so you’ll have many options at your fingertips.

The more property you have, the wealthier you are, at least on paper. This is especially true as you pay the properties off.

10. Invest in Yourself

I know we’ve mentioned investing a lot, but this is probably the most critical one. The phrase “you have to spend money to make money” is true, but you want to make sure you spend it in the right places.

One of the best ways to invest in yourself is to hire or align with a mentor and learn as much as you can.

11. Build up Your Reputation and Credibility

If you’re relying on business and side hustles to create the path to your first million, you’ll need to establish yourself as a reputable and credible company first. After all, why would people choose to do business with you otherwise?

Building up your reputation and credibility will take time. But be careful. It’s very easy to destroy it and can be difficult to restore.

12. Patience Is Key

Wealth, for most people, doesn’t come overnight and you shouldn’t expect that you will become a millionaire in that time frame. Patience is key, here. You need to be willing to wait out investments and let them do their thing.

If you’re starting a business, patience is just as important, because it takes time to establish your company and credibility and build up a reliable client base.